Description: This article discusses how FHLB advances, i.e. low cost loans, can supply valuable risk management benefits. By carefully structuring an advance to mature coincident with the anticipated premium inflows generated by insurance products, a company can largely eliminate future net cash flows and consequently the need to invest them in uncertain capital markets.

Description: This article describes the nature and features of collateralized mortgage obligations [CMO], identifies their key risk factors, and suggests steps that small insurers can take to effectively and economically model them.